http://swtotd.blogspot.com/
This essay was inspired by a persistent, evolutionary change in American attitudes toward Socialism and Capitalism. A Roper/Fortune Survey this past May found 43% of Americans believe Socialism would be good for the Country – a frightening conclusion for anyone who understands history. The second inspiration came from a John Steel Gordon op-ed written for the October 19-20, 2019 edition of the Wall Street Journal, “How Steam and Chips Remade the World,” in which he wrote of the world-changing effects of James Watt’s perfection of the steam engine in 1769 and the development of the Microprocessor in 1971 by Ted Hoff, a young scientist at Intel. His essay is testament to the benefits of free-market capitalism.
The basic principle of profits seems to be misunderstood by legions of young people, as well as veterans of the political scene who speak in grandiloquent terms of equality, while trying to secure for themselves positions of personal power. Their motives are selfish, not altruistic. Without profits, no company stakeholder is satisfied – not workers, customers, community, taxing authorities or shareholders, Bankrupt businesses help no one, other than a few bankruptcy lawyers.
Mr. Gordon’s words struck home, in part because with age comes reflection of things as they once were and as they now are, and of what the future holds – of how much better are our lives than those of our ancestors. My grandparents saw changes their parents could not have envisioned – the automobile, elevators, flight, radio, the automated assembly line, the modern flush toilet, television, the atomic bomb, polio vaccine, interstate highways. My parents saw changes their parents could never have envisioned – commercial jet travel, ATMs, personal computers, CT Scans and MRI machines, artificial hearts. And I have seen changes my parents never saw – the internet, self-driving cars, smart phones, robotic surgeries, social media, laser eye surgery. My point is not to list all technological advances, but to show how much and how exciting and how productive change has been in the past two hundred years. I wonder as to what changes my children and grandchildren will see that I shall not – advantages we cannot even envision. All of these improvements to our lives are a consequence of individuals and private businesses seeking profits. Now I worry that this dynamism will be brought to an end by those who advocate for the federalization of company charters and for a greater role of government in our lives, for example the concept of a government mandated emphasis on “stakeholders,” not shareholders. Keep in mind as well, every American worker who has a retirement plan has a stake in the private ownership of public companies. Do we really want to destroy the capital markets?